The department store chain disclosed the update in its third-quarter earnings call on Wednesday.
“We now expect to close approximately 65 locations this year,” Macy’s CEO Tony Spring said on the call. “As per our normal cadence, there will be closures after the holiday.
Macy’s delayed reporting its third-quarter earnings after an employee. Hide up to $151 million in costs related to delivering small packages.. The retailer, which also owns Bloomingdale’s and Bluemercury, said last month that it discovered an accounting problem with one of its accrual accounts while preparing its quarterly financial statements.
The company released new details on the incident on Wednesday, saying an independent investigation found that “an employee responsible for accounting for small package delivery costs intentionally made incorrect accounting entries.” and falsified underlying documents,” according to a Securities and Exchange Commission filing.
Macy’s COO and CFO Adrian Mitchell said the mistake “wasn’t theft” and that there was “no impact on revenue, and no impact on cash or inventory because all vendors were paid in full.” was.”
The company said it was shedding its control over financial reporting.
Department stores are struggling.
Macy’s isn’t alone in shuttering brick-and-mortar locations. of the retailer Shop closures accelerate It comes at a time when department stores struggle, fewer shoppers visit malls, and more Americans shop online.
US retailers have announced more than 7,100 store closures by the end of November 2024. That represents a 69 percent increase over the same time last year, according to recent data from research firm CoreSight. Forty-five retailers have filed for bankruptcy protection so far this year, compared to 25 retail bankruptcies in 2023, the report said.
Macy’s, meanwhile, is betting on the success of its other brands, Bloomingdale’s and BlueMercury. The company said it plans to open 15 Bloomingdale’s stores and 30 BlueMercury locations over the next three years, while remodeling about 30 existing BlueMercury stores.
Macy’s stock has fallen nearly 20 percent over the past year.